Rabobank 4th quarter report | TSLN.com

Rabobank 4th quarter report

Beef will see a continuation of strong import demand from China in 2020, according to Rabobank’s Beef Quarterly for Q4 2019.

Strong demand will be the driving force in the global beef market in 2020, while beef production will experience slow growth.

“Although beef is not strictly a fungible product, demand and supply pressures will cause a redistribution of product among markets. Market participants will need to be vigilant for any direct and indirect impacts as supply chains are tested,” according to senior animal protein analyst Angus Gidley-Baird.

In other developments…

Support Local Journalism


US import prices

Growing Chinese demand has attracted increased volumes of beef trimmings from Australia and New Zealand during 2019, and we expect ongoing competition for this supply into 2020. After trending up since mid-year, US import prices jumped in October and are heading towards the record levels seen in 2014. Such pricing pressure is forcing American QSR operators to seek alternative domestic supplies, pushing up other prices in the US.

China approves additional export plants

Given the very strong demand for imported protein, China has been active in approving plants for access to the Chinese market. Since August 1, Brazil has had 22 plants approved, and Argentina has had 8 plants approved. In addition, South Africa has been re-granted access, and a number of plants across Europe have also been approved.

New government in Argentina gives rise to uncertainty

Peronist Alberto Fernández’s new government takes office in early December. The lack of sector-specific agricultural policies and the increased chance of higher beef export tariffs (currently about 5%) are giving rise to uncertainty about the future of the Argentine beef market. However, extremely high prices and good margins for processors may help offset any increase in export tariffs that may eventuate.

Rabobank Seven-Nation Cattle Price Index

All major global markets have shown increasing or stable cattle prices over the past couple of months, stabilizing the Rabobank Seven-Nation Index.

–Rabobank


Support Local Journalism

Readers like you make the Tri-State Livestock News’ work possible. Your financial contribution supports our efforts to deliver quality, relevant coverage of the livestock industry.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Each donation will be used exclusively for the development and creation of increased news coverage.

 


Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.